'Restoring Cyrus Mistry undermines corporate democracy': Tata Sons to SC

Tata Sons on Thursday moved Supreme Court challenging reappointment of Cyrus Mistry as Executive Chairman of Tata Sons and declaration of appointment of incumbent Executive Chairman N. Chandrasekharan as illegal. In a 182-p petition filed before Supreme Court, Tata Sons has described order reinstating Mistry as a “dangerous legal precedent”.

Re: Tata Sons moves Supreme Court over NCLAT order on Cyrus Mistry's reappointment

'Detrimental to interests of company'

At very outset, Tata Sons have stated before Supreme Court that National Company Law Tribunal (NCLAT) restored Cyrus Mistry as Executive Chairman of company without relief being sought from tribunal at all. Granting a relief that has t been asked for in this case is "detrimental to interests of company" and “completely inconsistent with annals of corporate law”, Tata Sons has argued. 

Re: Tata sons to take legal recourse, after NCLAT reinstates Cyrus Mistry as group chairman

'Undermines corporate democracy'

Furr, it also said that Cyrus Mistry was replaced as Chairman of Tata Sons on October 24, 2016 by majority of board of directors (where all directors voted in favour of replacement except for two — one abstained from voting and ar was Mistry himself) for loss of confidence. Restoring him, it said, “undermines corporate democracy and rights of board of directors”.

Re: Cyrus Mistry hails his reinstatement as Tata Sons Chairman, says 'vindication of stand'

'A recipe for disaster'

Cyrus Mistry’s term as Chairman and Director of company expired in March 2017. Highlighting this in its petition, Tata Sons called Mistry’s reappointment a “recipe for disaster”, saying that it will create unnecessary confusion and le to more conflict. company furr claimed that “ Tata Group employs half a million people and contributes substantially to ecomy of country. Any show over manment of any of se companies puts public interest in jeopardy”.

petition is likely to be mentioned before Chief Justice of India S.A. Bobde on January 6 by lawyers for Tata Sons who seek an urgent hearing and an interim stay on NCLAT order. A meeting of board is reportedly scheduled on January 9.

Re: NCLAT restores Cyrus Mistry as Tata Sons executive chairman after 3 years